Company Background

Chavda Infra Limited is a Gujarat-based construction and EPC company engaged in construction of residential, commercial, and institutional buildings. Incorporated in Ahmedabad, the company has been progressively building its project portfolio across Western India with a focus on quality execution and client satisfaction.

Business Operations

Chavda operates primarily on an EPC (Engineering, Procurement, and Construction) model and labour contracting model. Revenue streams include civil construction contracts for residential housing societies, corporate campuses, educational institutions, and government infrastructure projects.

Key Investment Highlights

1. Robust Order Book: Sustained order intake from both private developers and government housing projects provides 18+ months of revenue visibility.

2. Promoter Track Record: Experienced promoters with deep knowledge of the construction sector and established relationships with leading real estate developers.

3. Geographic Expansion: Moving beyond home-state Gujarat into Maharashtra and Rajasthan to diversify project wins and reduce concentration risk.

4. Working Capital Efficiency: Improving debtor collection cycles and advance billing practices are supporting stronger operational cash flows.

CBA Research View — FY26 Factsheet

CBA views Chavda Infra as an emerging mid-cap construction story with near-term growth triggers from new project wins and a steady margin improvement trajectory. The company benefits from the broader government push on housing under PMAY and affordable housing schemes that are generating consistent demand for civil construction services.

Risk Factors

Key risks include geographic concentration in Gujarat, client concentration risk, input cost volatility in steel and cement, and potential working capital stress if payment cycles elongate due to project delays or client-side funding issues.